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HUT 8 and US Bitcoin have decided to merge. This multi-million dollar BTC mining business deal is expected to change the course of the digital asset mining scene.
The two firms will merge to create a new crypto mining business called Hut 8 Corp (“New Hut” or “Combined Company”), domiciled in the US. They have announced the consolidation of resources and restructuring of their balance sheet to compete in the mining space. Hut 8 Corp will have a market capitalization of around £990 million. According to an official statement, the new company will have access to 825MW of “gross energy” across 6 sites for mining operations, hosting and infrastructure management.
Existing US Bitcoin and Hut 8 Holders Will Own 50% Each of Hut 8 Corp
Bill Tai will retain his position as Chairman of the Board. Jamie Leverton will remain CEO. Michael Ho will become Chief Strategy Officer of Hut 8 Corp. Both USBTC and Hut 8 will become wholly owned subsidiaries of Hut 8 Corp. The new company will be owned equally by existing shareholders of each company.
Hut 8 Corp merger estimated to accelerate ESG goals
The merger deal will increase the “New Hut”‘s chances of bitcoin mining at the world’s highest capacity Bitcoin mining sites, such as Alberta in Canada and Texas and New York in the US.
New Hut will add renewable, zero-carbon energy to its overall energy mix. His focus will be on economic mining and generating highly diversified income streams. Therefore, the new team is committed to accelerating ESG industry best practices, efforts, and goals.
USBTC Co-Founder Says: “Hut 8 Fits Perfectly”
Michael Ho (Co-Founder and CEO of USBTC) and Hut 8 Corp’s new Chief Strategy Officer commented that Hut 8’s strong track record, commendable fiscal management and compatible approach to building diversified revenue streams are what attracted them. He says Hut 8 is the perfect fit to join them on their ambitious growth journey.
Hut 8 shares have fallen as much as 11% after the merger agreement
Hut 8 Mining Corp. (Hut 8) (Toronto Stock Exchange/TSX: HUT) (Nasdaq: HUT) was Canada’s first digital asset miner and one of the largest and leading miners in North America. Hut 8 was led by an exceptional team of technologists and business builders, optimistic about bitcoin, blockchain and web 3.0. It has revolutionized and created a hybrid data model to serve both the world of traditional computing and the nascent sector of digital asset computing. Hut 8 was the first Canadian mining company to be listed on the Nasdaq Global Select Composite Index. It was the first blockchain company to be listed on the TSX Composite Index. Since the merger was announced, Hut 8 shares have fallen as much as 11%.
Shareholders will receive 0.6716 of a New Hut share for every US Bitcoin share.
USBTC is a large-scale North American mining company. It has campuses in 3 locations in the US: Texas, Nebraska, and New York. It was founded by a team of resourceful entrepreneurs and entrepreneurial business executives. USBTC has always been ambitious with their growth roadmap and with this merger they have set out to establish a new dimension and trajectory in the crypto economy. As a result of the merger, USBTC shareholders will receive 0.6716 of a New Hut share for each USBTC share they own.
How does the Merger benefit Investors?
The merger will create financial stability:
The merger would result in a total combined market value of US$990 million. The consolidation of resources between USBTC and Hut 8 will result in a stable financial condition in the crypto economy even with turbulent market cycles. This, in turn, will encourage investors to invest.
Cabin consideration and USBTC consideration:
Hut 8 shareholders will receive 0.2 of a New Hut share per Hut 8 share, resulting in a five-to-one reverse Hut 8 stock split. USBTC shareholders will receive 0.6716 of a share of New Hut for each USBTC share.
Its objective is to achieve a diversified portfolio:
Both Hut 8 and USBTC share a mutual interest in generating diversified fiat income. Now, with combined forces, Hut 8 Corp will have a diversified portfolio of cryptocurrencies. New Hut will benefit from Hut 8’s expertise in crypto mining and US Bitcoin Corp’s expertise in crypto trading and blockchain technology.
This, in turn, solidifies a strong foundation for the company to grow and expand and create value for investors.
Presence in two countries
Hut 8 is a Canadian company and USBTC is a US company. Following the Merger, although New Hut will be based in the US, due to its mining sites, it will have a presence in both Canada and the United States. This will allow them to be well-equipped to absorb the uncertainties of an ever-changing crypto market. Thus, it offers favorable investment options for investors.
An emerging major player in the crypto industry:
New Hut’s combined executive team will have 210 members. You will benefit significantly from the knowledge and experience of your management and stakeholders. You will have access to a large and diverse crypto mining, crypto trading and blockchain customer base. This will secure the technology and resources for New Hut to invest in emerging technologies and cutting-edge projects. Which, as a result, will take them to the top as a major player in the cryptocurrency industry. And it is the investors who will ultimately reap its benefits.
Commitment to Economic Mining
New Hut has stated its commitment and goals to work to accelerate and enhance industry leading ESG goals. New Hut’s focus will be on generating diversified fiat income and economic mining. According to an official statement, New Hut will incorporate renewable and carbon-neutral energy from wind and hydroelectric power into its gross energy mix. This, in our opinion, will tremendously create New Hut’s position in the crypto space as an environmentally conscious green player. This, in turn, opens doors for investors with love and a flair for the environment.
Other green crypto alternatives to invest
Investors who want to wait and see how this merger unfolds can always invest in other green alternatives like C+Charge (CCHG). One of the greenest cryptocurrencies to buy. Offer carbon credits as a reward.
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